Introduction

In the current digitalization era, kids have become more interactive and social on virtual platforms while accessing applications and watching videos. However, parents and kids used to face issue to track the spending and manage financial related goals. The piggy bank apps or games can solve the problem of parents to establish balance of control and make their kids self-independent.

The modern concept would provide multiple benefits to parents and kids by unlocking various features through piggy bank applications like set pocket money, transfer funds, and lock limit on cards. It will help technological enthusiastic kids to gain self-learning on money management skills which will benefit in the long-term for saving and investments and other long-term goals. As per the study, 9 out of 10 parents believes it is important to teach money management habits among their kids at young age.

The working parents are more worried or found difficult to provide pocket money instantly whenever their children require to use for urgent transaction such as fees, groceries, lunch meal etc. The money management digital wallet applications not just allow parents to provide pocket money but also teach skills on financial management and risk smartly at early age.

Features of Digital Wallet Solution

The digital wallet concept allows better money management solution that provides robust and advance feature for kids that guides, review and manage financial management of children. It provides key solution by tracking money virtually with ease.

• Set allowances

The parents and kids can identify and set preferrable allowances to automatically deposit specific amount of transaction in Kid’s account on specific day. It also provides ad-hoc feature to send virtual money whenever the kids require.

• Guide Kid’s Smartly

The piggy bank and money management application motivate kids to save part of pocket money for various causes like donation, expenses and savings. These allowances can be guided by parents to pot different allowances as per the convenience.

• Security

The virtual wallet provides act as a guardian with encryption and save passwords and avoid sharing of credentials with others. The security is concerned with two-factor authentication with parent and children to track the allowances and pocket money given to the children and monitor money management goals.

• Interest on Savings

Introducing digital wallet applications for kids would encourage kids to gain compound interest on the saving amount and build long-term investment approach. The kids would learn about the key money management concept that is power of compound interest which will make profitable investment for kids in future.

• Achievements

The digital wallet provides track records and analysis in the form of report on expenditure monthly or annually. Kid’s can view the spending history and financial statement and assess the income or expenses growth. Moreover, kids and parent can share achievements and celebrate its milestone on progress.

Benefits for Children

The digital wallet comes with a solution for money management of kids by limiting the daily spends on their applications. Moreover, it will allow categories the expenditure in various elements such as shopping, entertainment, groceries, etc. Let’s consider the key advantage of digital wallet kids can achieve it.

• Better decision-making

The kids would understand the responsibilities and value of money making. The kids can make better decision to spend money on quality solutions at young age and avoid unnecessary expenses on non-essential goods and services. For example, if the parents have provided $100 as pocket money in digital wallet, kids have to think critically on spending money for essential and valuable goods or services. It will send real-time notification to the parents and kids that builds transparency and tracking history of transactions.

• Build saving habit

The interactive and digital wallet concept will build savings habits by setting multiple visual goals that can be easily tracked and monitor the progress. Moreover, the digital wallet applications motivate kids to complete saving goals and earn reward by unlocking money through cashbacks, rewards and discount on transactions.

Benefits for Parents

Parents can ensure to cultivate or generate financial saving habits in their kids and play crucial role to determine digital wallet solution. Lets’ look at the following solutions parents can achieve it via digital wallet.

• Flexibility

The parents gain ease and convenience through digital wallet as you can add multiple profile accounts for kids. For example, A parent can manage multiple kids account and monitor easily with digital wallet. Moreover, parents can establish instant payment or regular payment of pocket money. The feature of digital wallet would allow parent to create task to earn more pocket money for the kids. It will motivate kids to complete the task be active to manage money and earn more pocket money.

• Shape child’s money management

Parents can decide weekly or daily spending limits on the digital wallet and determine for which categories your kids can spend money. It would allow parents to block or unblock the card by considering over-expenses instantly with the real-time notification.  

Things to Consider before choosing right piggy bank app or game

• Application knowledge

Parents and kids must be aware about the digital wallet application which is specifically related with kids and the content available on the application or website is children-oriented only like Advertisement. As a parent, research on the key data such as ratings, reviews, downloading numbers, compatibility with device, security policies to be cautious against phishing and malware.

• Features

Parents should emphasis on the multiple features that are provided by the digital wallet for convenience with mobile applications, using prepaid cards, compatibility with user interface and instant card blocking feature.

• Comply with PCI-DSS standards

Parents and kids should be aware against the hazardous elements such as using public Wi-Fi. The parents must consider the compliance of digital wallet with payment card industry data security standards (PCI-DSS) to protect credit or debit card before lending or depositing money at digital wallet.  The standard compliance ensures security and safety to perform transaction or store sensitive information to avoid misuse.

• Protecting Data

Parents and kids must choose digital wallet that provides flexibility in signing-in from other devices or block account in case smartphone gets stolen or lost. The flexibility of protecting data ensure to avoid stress by reporting issue with call center services and spending time on data validation process.

Top 5 Recommending Piggy Bank Apps for kids

• Rooster Money

The digital wallet has multiple range of features for kids by accomplishing progress tasks with star chart and free plan. The star chart plan made by Rooster money is appropriate for 3 years old kid and above to set goals reward them by giving stars for maintaining good behavior as option of monetary allowance. While the free plan is 5 years old and above which is a virtual tracker than ensure to monitor money and spending without the need of payment on deposits.

Play store: ☆ 4.7, 3335 Reviews

App Store: ☆ 4.8, 1700 Reviews

Age: 3 to 18 years old

Price: Free to £25 annually

• HyperJar Kids

The HyperJar kids piggy bank app provides key feature of prepaid card for kids just like debit cards with parental oversight. The application is perfect guardian for kids and parent which helps to determine the limit amount and control money flow on spending. The application has user-friendly interface that allows to monitor live balance and transaction history. The application benefits kids to create unlimited jars and learn about financial concept such as budgeting, financial planning and savings.

Play store: ☆ 4.8, 769 Reviews

App Store: ☆ 4.7, 1560 Reviews

Age: 6 to 16 years old

Price: Free

• Starling Kite

The Starling Kite provides different features in a digital wallet for kids which kid-friendly and provide own bank account membership. The child can monitor their own balance and monetary transactions on their devices. Parents can easily control the spending and limit the usage of prepaid kids’ debit cards by giving them freedom to learn and use money.

Play store: ☆ 4.4, 57510 Reviews

App Store: ☆ 4.9, 253203 Reviews

Age: 6 to 16 years old

Price: £1.99 monthly

• GoHenry

The piggy bank provide children comes with prepaid card that allows kids to make payments for spending money in stores, cashpoints and online payment. GoHenry application allows kids to earn regular cashpoints and rewards for achieving spending goals via parental control.

Play store: ☆ 4.5, 19756 Reviews

App Store: ☆ 4.7, 23456 Reviews

Age: 6 to 18 years old

Price: £2.99 per month

• Revolut Junior

Lastly, the Revolut Junior piggy bank app connects kids to function banking access and features. It has launched junior account and prepaid card for kids for the basic plan. However, if you as a parent require to open multiple accounts for multiple kids, junior accounts provide exclusive access to perform goals and tasks which requires monthly subscription of $2.99 monthly for Revolut plus and $12.99 monthly for Revolut metal membership.

Play store: ☆ 4.5, 1134 Reviews

App Store: ☆ 4.5, 98 Reviews

Age: 6 to 17 years old

Price: Free to £12.99 per month

Bottom Line

We hope the digital wallet knowledge for kids has been helpful for you. The money management in Covid-19 and digitalization period has created crucial point for kids to understand the importance of monetary value and learn money management skills at early age. Learn more new concepts by reading by our new blogs and articles for free.

References

Karim, M.W., Haque, A., Ulfy, M.A., Hossain, M.A. and Anis, M.Z., 2020. Factors influencing the use of E-wallet as a payment method among Malaysian young adults. Journal of International Business and Management, 3(2), pp.1-12.

Manikandan, M. and Chandramohan, S., 2016. A study on awareness level of mobile wallets servives among management students. International Journal of Advanced Research in Management and Social Sciences, 5(7), pp.10-19.

Aji, H.M., Berakon, I. and Md Husin, M., 2020. COVID-19 and e-wallet usage intention: A multigroup analysis between Indonesia and Malaysia. Cogent Business & Management, 7(1), p.1804181.

Revathy, C. and Balaji, P., 2020. Determinants of behavioural intention on e-wallet usage: an empirical examination in amid of covid-19 lockdown period. International Journal of Management (IJM), 11(6), pp.92-104.

Tong, Y., 2018. Piggy Pennies: An Interactive Piggy Bank to Help Children Learn Money Management. Rochester Institute of Technology.